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- IDFC Super Saver Income - Medium Term Review
- Indian Bond Prices
- DSP BlackRock introduces One Time Mandate facility
| IDFC Super Saver Income - Medium Term Review Posted: 30 Dec 2013 04:32 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
IDFC Super Saver Income - Medium Term
IDFC Super Saver Income-Medium Term (SSI-MT) is a long-term income fund. Its current asset size of Rs 2240.34 crore assets under management (AUM) is higher than the category median of Rs 1457 crore. The fund was launched in June 2003 and is benchmarked against the Crisil Short Bond Index.
Peer Group. We have used a set of income funds (excluding dynamic bond funds and credit opportunity funds) with an average modified duration of more than 24 months in the last three years. There were 26 funds that fulfilled our criteria.
Objective. The scheme seeks to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities.
Returns.
All figures in % as on February 28, 2013; Returns above 1-year in CAGR terms
The fund has outperformed its benchmark but underperformed its category average over the six-month, one-year and three-year horizons. Its return since inception is also higher than that of its benchmark. Over the five-year horizon, the fund has beaten its benchmark and its category average.
All figures in %
In terms of calendar year returns the fund has done better than the category average in 2009, 2010 and 2011. It underperformed compared to the category average in 2008 and 2012, when there was marginal underperformance. In comparison to its benchmark it outperformed in 2008, 2010, 2011 and 2012 while it underperformed only 2008 and 2010.
Interest-Rate Risk. The current modified duration of the fund is 33.84 months or 2.82 years. The category median is 60 months or 5 years. Thus, the fund is less aggressive on duration compared to its category.
Credit Risk. The fund has a portfolio that has a relatively less credit risk compared to the category average. (Refer to the appendix below to see the top holdings of the fund)
As on Jan 31, 2013
YTM. The fund's yield to maturity (YTM) currently stands at 8.82 per cent. The category median is 8.33 per cent. The average YTM for the fund over the last 12 months has been 9.34 per cent and over the last 24 months this has been at 9.43 per cent.
Portfolio. Over the past one year 2012, the fund maintained a portfolio that was heavily dominated by corporate debt. The fund has also maintained a lower allocation to government securities than the category average.
Portfolio: Average holding over last 12 months as on January 31, 2013
Change in the portfolio: Over the last one year the fund's portfolio has reduced its corporate debt allocation. Allocation to government securities was 11.55 per cent in February 2012 and then this was reduced to nil by June 2012 and it was re-introduced to the portfolio by August at 23.80 per cent. The fund manager may have done so since interest rates are expected to soften in 2013, and for this the exposure to certificate of deposit was reduced.
Expense Ratio. The fund has an expense ratio of 1.38 per cent which is higher than the category median of 1.25 per cent. A high expense ratio is a negative for investors in a debt fund where returns are already much lower compared to equity funds.
Exit Load. The fund has an exit load of 0.60 per cent on or before nine months. This is less restrictive when compared to most of the other funds in this category which have an exit load applicable up to one year.
Fund Manager. Anupam Joshi is the Fund Manager for IDFC SSI Medium Term Plan since March 19, 2009. He also manages IDFC Money Manager Fund - Treasury Plan, IDFC Money Manager Fund - Investment Plan, IDFC Cash Fund and IDFC Ultra Short Term Fund. He has over 10 years of experience in Portfolio Management & Dealing. Prior to this, Anupam Joshi was working with Principal PNB Asset Management Company.
Conclusion. The fund has outperformed its benchmark in four of the last five calendar years and also it has a low exit load, making it easier for redeployment. Its performance could have been even better if the expense ratio was more in line with the category median, but considering that the fund has a better risk-return profile there is still a strong case for investors with 2-3 year horizon to invest with the fund.
Appendix
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--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
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| Posted: 30 Dec 2013 02:24 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
For FII money to come in, investors need to be convinced that bond prices will rise in the future
High inflation, lower-than-expected open market bond purchases and fears that the government might not be able to curb the fiscal deficit have conspired to keep yields higher.
The yield on the new 10-year bond issued by the government is 8.7%, a reflection of demand for this particular security that will become the benchmark with more supplies. The existing 10-year benchmark continues to trade close to 9%, despite the central bank pulling back some of its exceptional tightening measures.
High inflation, which has prompted the Reserve Bank of India (RBI) to raise the repo rate, lower-than-expected open market bond purchases and fears that the government might not be able to curb the fiscal deficit at the promised number have conspired to keep yields higher.
Still, RBI governor Raghuram Rajan's statement to analysts after the last monetary review that "the central bank risks excessive monetary tightening given the lag in monetary policy" has led a section of the market to believe that the December policy may not see any tightening. It is also hoped that the central bank would completely wind down its exceptional tightening measures and the repo rate would become the operative rate.
The more immediate trigger, one that will either reassure or destroy investor hopes, would be the gross domestic product numbers that will be released on Friday. If the numbers beat market expectations, that would provide RBI some elbow room to hike rates further. In such a scenario, it is difficult to see bond yields come down.
Of course, there is also a possibility that banks may step up their government security purchases after receiving $18 billion through special windows to attract foreign currency deposits. As it is, credit growth has again declined after reaching a high in mid-September owing to high money market rates.
While that could drag down bond yields, there would not be much support from foreign institutional investor (FII) buying. Despite the gap between the Indian and the US 10-year yields widening to almost a 10-year high, FIIs have continued to pull out their money from Indian bonds. For FII money to come in, those investors need to be convinced that bond prices will rise in the future. That uncertainty will remain for some more time.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DSP BlackRock introduces One Time Mandate facility Posted: 30 Dec 2013 01:28 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
DSP BlackRock Mutual fund introduced a 'One Time Mandate' (OTM) facility with effect from December 16, 2013. The facility will allow investors to transact with the fund house in a convenient manner. Investors can submit an OTM form to the fund that authorizes bank to debit their account up to a specified limit, without the need of a cheque or fund transfer letter, for subsequent transactions.
The facility is available to investors with a folio number with the AMC. It allows investors to start SIP, invest lump sum in any scheme by sending instructions through Transaction forms, online facility, SMS or call on a specified number.
The fund house also announced dividend under the dividend option of DSPBR FMP Series 82- 12M- D and DSPBR FMP Series 82- 12M- DQ.
The quantum of dividend will be the entire distributable surplus as on the record date. The record date has been fixed as December 19, 2013.
Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
------------------ Best Performing Mutual Funds
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